SKODA SUMMATIVE ESSAY PLAN
-for the business to grow and be successful, it was crucial that customer perception and the images consumers had of skoda and their values were changed
-Skoda’s major turnaround was initiated by the acquisition that took place by VW in April 1991
-Big cultural differences between the two companies so was a challenge to improve it
* Training – direct impact on performance of employees
-Skoda workers were sent to VW wolfsburg plant for training
-However, their productivity did not immediately improve suggesting how great the changes were that needed to be made and how stuck in their own methods Skoda were.
- Mullins benefits of ...view middle of the document...
-not so much focus on quantity but focus on improving quality and quality control measures
-Czechs were using spare parts from what was available but VW made it adopt the idea of using the best parts even if this meant waiting. This would ensure a better quality product, helping reduce the reputation Skoda had for bad quality cars – emphasis on research and development here and how important it is to do research and get the best parts. Also helped skoda to better understand the environment
-Skoda’s focus became the design of cars and acquired designers from around Europe. Better looking and design of cars would help improve the image of skoda - cars no longer seen as low budget or low quality
-Common platform approach by VW on skoda – lowered development costs, increased profits, allowed engines and chassis to be trialed in a niche market before being trialled over the whole group, different cars would then be tried out under diff names to see what worked best – improved methods of research and development.
* Branding and image transformation due to previous failure
-Advertising in western markets, focusing on skoda’s improvement and admitting to problems it had before. (Marketing textbook, pg 475)
-Planning! – had a game plan – make a serious car to improve skoda’s reputation before making exciting ones.
-Environmentally friendly – also had to do this to keep up with EU legal and environmental regulations but also would have improved reputation
-Marketing strategy – USP = focus on ‘happy skoda customers’ and customer experience – allowed them to alleviate negative image before. put them in good public light as they were seen to care about what customers’ wants
-new website that was user friendly and fun to use, appealing to a younger audience.
-branding (management textbook pg 374) – helps consumers to gauge the level of product quality, becoming more recognisable, made it easier to distinguish the old skoda from the new skoda
-marketing orientation(lecture 8) focus, means...